Lender's rebuttal: Application against Essar Steel authorised under SBI Act

Ongoing hearing of insolvency proceedings against Essar Steel at NCLT bench was put off for July 26

In a rebuttal to Essar Steel's claims that State Bank of India's (SBI) application in the National Company Law Tribunal (NCLT) was invalid, the lead lender told the Ahmedabad bench that under section 76 and 77 of SBI Act 1955, the signatory was authorised to initiate insolvency proceedings.

Essar Steel on Monday had sought dismissal of SBI's application for insolvency proceedings at NCLT on the grounds that the signatory of the application filed at NCLT did not have any authorisation of such powers by SBI Chairman or Central Board, in this case Chairperson Arundhati Bhattacharya under section 27 of SBI